The amount the insured is responsible for before insurance pays a covered claim.

Why it matters

Deductibles affect claim economics and out-of-pocket cost.

Example

A $2,500 deductible means the first $2,500 is generally your responsibility.

Common mistake

Assuming every peril has the same deductible.

Related terms

wind-deductible;percentage-deductible

Definitions are educational summaries. The policy's definitions and applicable law control a specific claim or coverage question.